What was the EV/EBITDA multiple Amazon actual paid to acquire Whole Foods using EBITDA at 9/25/2016? Use the data from Exhibit 1 for a top down EBITDA calculation (Starting from EBIT not Net Income), Depreciation & Amortization in fiscal 2016 of $498 million, and Amazon purchase price of $13.7 bln as the EV which includes Whole Foods debt (p.10 of the case).
A. 3.2x
B. 6.9x
C. 10.0x
D. 20.0x
Please answer as soon as you reasonably can
EV = $ 13.7 Bn
EBITDA = EBIT + Depreciation = 870 + 498 = $ 1.368 B
EV/EBITDA = 10.01 = approx 10 times
Answer is (C)
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